Only 10 short sales exist in Tallahassee's housing market compared to a decade ago.

Before 2006, short sales were rare. Then local property values tanked and residents became trapped in their homes when they refinanced and tapped their equity dry. Scores of homeowners owed more than their homes were worth. For those trying to sell, it meant they owed the bank after the house was sold.

That phenomenon rippled nationwide, including Tallahassee. Now the market is strong, said Joe Manausa, a veteran Realtor who creates frequent data reports regarding the local housing market.

Buy Photo

A three bedroom on the east side of town for sale, one of only 10 short sale houses left on the Tallahassee market, according to Joe Manausa Real Estate.(Photo: Joe Rondone/Democrat)

From 2008 to 2010, he said Tallahassee had several hundred short sales homes listed and another several hundred more pending.

"Tallahassee got deluged with short sales," he said. "We have been working our way through them and the values are starting to go up.”

He estimates a 10 percent increase in appreciation for homes under $400,000. Now more equity is available, even if homeowners face a financial crunch.

“Banks are no longer saying I’ll take it on the chin on this one because they don’t have to," he said.

Contact TaMaryn Waters at tlwaters@tallahassee.com or follow @TaMarynWaters on Twitter.